Year: 2025

The Independent Electricity Market Operator of the Philippines, Inc. (IEMOP) intends to procure the CRSS Redesign and Enhancement Project Computing Hardware, Third-Party Software, Cloud Services, and Auxiliary Airconditioning Infrastructure Purchase Requisition.

IEMOP now invites Service Providers/Firms to submit their Letter of Intent for the Project, addressed to Engr. Robinson P. Descanzo, President and Chief Executive Officer.

Please submit your letter of Intent by email to BACSecretariat@iemop.ph and or by hand to the IEMOP office at 9/F Robinsons Equitable Tower, ADB Avenue, Ortigas Center, Pasig City, Philippines 1600, on or before 24 October 2025, 12:00 NN

If you have questions, you can contact the Bids and Awards Committee Secretariat at (02) 5318-9376.

Download Official ITB Letter Here:
BAC-CRSS-ITB-25-001

In September 2025, the system-wide average supply increased by 0.5% to 20,712 MW, while demand declined by 2.9% to 13,640 MW. This resulted in a comfortable supply-demand margin of 5,194 MW, up from 4,578 MW in August 2025. Consequently, average market prices fell to PHP 3.04/kWh from PHP 4.59/kWh in the previous month—marking the lowest level recorded in the past seven months.

The expanded margin led to lower market prices across the board. In Luzon, prices dropped significantly due to higher supply and lower demand, despite increased power exports through the HVDC link. In Visayas, prices also decreased, accompanied by a reduced power import from Mindanao. Mindanao experienced a similar trend, with prices declining in line with reduced export volumes to the Visayas.

Power plants operated reliably as there were no major unplanned outages experienced, coupled with hydropower plant output boosted by the rainy season, overall market conditions were favorable for keeping prices low, contributing to the overall decrease in prices. The impact, if any, of the earthquake that occurred in Visayas on September 30, 2025, which caused multiple tripping of transmission lines and generators, shall be reflected in the October 2025 billing period.

Moreover, in terms of system-wide generation mix, renewable energy (RE) accounted for 26% of total generation. Coal-fired generation increased its share from 50.6% to 55.1%. Hydropower generation continued its upward trend, rising from 12.6% to 13.5%, due to intense rains brought about by recent typhoons. Meanwhile, the shares of natural gas and oil-based generation declined, with natural gas dropping from 22% to 17%, and oil-based generation decreasing from 0.9% to 0.5%. Solar and geothermal generation also saw slight reductions, with solar decreasing from 4.0% to 3.7%, and geothermal from 7.8% to 7.6%. Approximately 25% (2.34 TWh) of total customer transactions for the period were sourced from the retail market.

The Effective Spot Settlement Price (ESSP) for September 2025 was PHP 3.28/kWh, down from PHP 5.56/kWh in August 2025. Spot market volume represented 13.7% of total traded electricity, a decrease from 15.5% in the previous month. In line with this, the total trading amount fell from PHP 15.32 billion to PHP 8.84 billion.

 

Reserve Market

In the Reserve Market, zonal prices for Regulation Reserves increased in both Luzon and Mindanao. However, prices for all other reserve commodity types across most regions declined, except for Dispatchable Reserves in Visayas. System-wide reserve market transactions amounted to PHP 4.68 Billion, down from PHP 5 Billion in August 2025.
In Luzon, overall trading amounts declined due to a decrease in spot market exposure. Regulation Reserves increased in volume and cleared at higher prices ranging from PHP 3 to 9 per kWh, primarily from battery and hydro sources, although their spot share declined. Contingency Reserves fell, reflecting both lower prices and a reduced spot share, clearing at PHP 0.9 to 1.2 per kWh from oil and coal plants. Dispatchable Reserves also saw lower prices and reduced spot exposure, clearing between PHP 0.4 and 1.9 per kWh from oil-based generators.

In Visayas, a mixed trading outcome was observed. Regulation Reserves declined due to lower zonal prices and reduced spot market share. Contingency Reserves also decreased in price while maintaining consistent spot exposure. Conversely, Dispatchable Reserves increased in price despite a slight decline in spot participation. Regulation Reserves cleared at prices ranging from PHP 6 to 25 per kWh, Contingency Reserves at PHP 3.8 to 5.5 per kWh, and Dispatchable Reserves at PHP 7 to 9 per kWh, largely from oil and coal plants.

In Mindanao, overall trading amount declined. Regulation Reserves dropped due to lower spot exposure, even as output from battery facilities cleared at prices ranging from PHP 23 to PHP 25 per kWh. Contingency Reserves also decreased, with clearing prices between PHP 0.3 and 3.3 per kWh, sourced mainly from battery and coal facilities. Dispatchable Reserves experienced a sharp decline, with lower zonal prices and consistent spot exposure, clearing at PHP 0.9 per kWh from oil-based plants.

The Independent Electricity Market Operator of the Philippines (IEMOP) proudly celebrates seven years of independence, integrity, fairness, accountability, competence, and dynamism.

Since its assumption of market operator functions on 26 September 2018, IEMOP has played a pivotal role in the management and development of the country’s electricity market, empowering stakeholders, and enabling greater access to reliable energy. The 7^th anniversary celebration not only commemorates this legacy but also sets the stage for the future of the Philippine energy industry.

IEMOP marked 2025 as a pivotal year with significant strides in the electricity market, stakeholder collaboration, and sustainability – culminating in the successful conduct of the annual Market Participants Update (MPU) and the third Philippine Electric Power Industry Forum (PEPIF) 2025 in Mindanao.

Held in Cagayan de Oro City on 2 April 2025, the MPU gathered key stakeholders where the latest in market operations were apprised, and concerns and queries were raised. The following day, IEMOP, in collaboration with the Department of Energy (DOE) and the Energy Regulatory Commission (ERC), hosted the Philippine Electric Industry Forum (PEPIF) 2025. Themed “Accelerating Philippine Renewable Energy Transition through Innovation and Collaboration”, key stakeholders critically discussed pressing matters in the Philippine electric power industry.

“Let us embrace the spirit of collaboration and innovation as we work together to accelerate the Philippine renewable energy transition- but we should not forget to collaborate also with our consumers, the electricity end-users. After all, the industry does not exist for itself but for those who consume electricity,” said Cong. Sergio C. Dagooc of the APEC Party List, the event’s Guest of Honor. These events strengthened coordination between public and private entities in Mindanao and beyond.

On April 29-30, IEMOP extended its reach regionally by supporting the Renewable Energy Markets Asia 2025 in Singapore. IEMOP showcased the Philippine electricity market’s progress as regards RECs trading and explored regional strategies for accelerating the adoption of clean energy. On 26 December 2025, the DOE launched the full commercial operations of the Renewable Energy Market (REM), the country’s platform for local RECs trading to facilitate compliance of mandated participants with their Renewable Portfolio Standards (RPS) obligations. Since then, IEMOP, as the Renewable Energy Registrar (RER) has issued 52,782,593 RECs — 25.13% of which had been retired for Compliance years 2020-2022.

2025 records a significant drop in the spot market prices, which hit a five-year low in the first half of 2025. The average spot price dropped to ₱4.14/kWh, down by 26% from 2024, driven by improved supply conditions, increased renewable capacity, and reduced grid congestion.

“The lower prices in the market is the result of improved efficiency in the entire industry value chain. It is a product of the collaborative efforts of all sectors, public and private,” said Atty. Richard J. Nethercott, IEMOP President and CEO, highlighting the joint efforts of every involved entity felt both by consumers and the broader economy.

This year also marked the advent of the Retail Aggregation Program (RAP) which is a vital step forward in promoting greater access to the benefits of Retail Competition and Open Access (RCOA), especially for institutions and communities whose individual demands fall short of the contestability threshold. In 2024, the retail market energy share reached 23.9 TWh, accounting for 21% of total energy transactions, or an average of 2.0 TWh per month. Since the first RAP switch in February 2025, the monthly average retail market share has since increased to 2.14 TWh, representing 23% of total energy transactions. Of this retail market share, 13,079 MWh (0.13 TWh) came from RAP. The average demand for RAP is about 18.40 MW, with a peak demand reaching 30.66 MW. This suggests that, by enabling participation through retail aggregation, the program democratizes access to the competitive retail electricity market thereby allowing aggregated consumers to negotiate better rates, demand improved service quality and support alternative energy sources.

As the Philippines energy landscape continues to evolve, IEMOP recognizes the importance of empowering electricity end-users through more competitive and consumer-friendly energy options and commends entities for embracing innovations that align with its shared vision of a more sustainable and inclusive energy future. IEMOP remains steadfast in its role as the independent market operator — fostering competitiveness, efficiency, and transparency in the WESM.

“To understand why prices are lower in the WESM, at least for the first half of the year, we need to appreciate the contribution of each segment in the electric power industry value chain,” said Atty. Richard J. Nethercott, IEMOP President and CEO, as regards the lower clearing prices in the WESM.

“The lower prices in the market is the result of improved efficiency in the entire industry value chain. It is a product of the collobarative efforts of all sectors, public and private,” Nethercott added.

Electricity prices in the Wholesale Electricity Spot Market (WESM) have dropped significantly in the first half of 2025, thanks to improved supply margins, growing renewable energy investments, and continued enhancements in transmission infrastructure.

From an average of PhP5.58 per kilowatt-hour (kWh) in 2024, WESM prices decreased to PhP 4.14/kWh in the first half of 2025 — a 26% decline — marking the most affordable average market price since 2020. This price drop translates to more competitive electricity costs for Filipino consumers and businesses.

“It begins with government. As in any other industry, government plays an essential role in crafting the necessary policy and legal framework to guide private stakeholders in their strategic decision making. Even more so in the Philippine electric power industry whose structure is “almost” completely private,” Nethercott explained.

In line with President Marcos’ vision of lowering electricity prices, the Department of Energy (DOE) has since introduced several policies and initiatives focused on making power more affordable for consumers. Among others, the DOE actively pursued the following:

• Green Energy Auction Program (GEAP). The DOE’s Green Energy Auction rounds seek to procure renewable energy (solar, wind, hydro, geothermal, biomass, energy storage) at competitive rates. According to IEMOP simulations, successful GEA rounds (1–5) could lower average electricity prices to around ₱3.36/kWh in Luzon by 2029 (from ₱4.95/kWh), and similar reductions in Visayas and Mindanao grids—saving ₱0.90–₱1.32/kWh overall by 2029.
• Competitive Procurement. The DOE also requires that distribution utilities adopt a competitive selection process for power procurement (“least-cost sourcing”) to secure the most affordable power supply and pass those savings to end-users.
• Promoting Energy Efficiency & Demand-Side Management (DSM). The DOE urges consumers to adopt energy-saving habits—particularly during summer peak periods (e.g. 11 AM–3 PM and 6–9 PM)—to help ease grid congestion and reduce spot-market price spikes. Commercial, government, and industrial sectors are encouraged to reschedule high-energy operations and implement energy audits and building management systems to reduce overall consumption and peak load strain.
• Expanding Transmission Infrastructure. DOE aims to reduce congestion costs and enable cheaper power sharing between regions by requiring the transmission services provider to fast-track projects under the approved Transmission Development Plan.
• Libelarization of RE facility ownership. On 15 November 2022, the DOE, through DOE Circular No. 2022-11-0034, amended Section 19 of the Implementing Rules and Regulations (IRR) of the Renewable Energy Act of 2008 (RA 9513) to exempt the development and operation of renewable energy projects from the forty percent (40%) foreign equity limitation. This reform aims to boost investments in the renewable energy sector and help the Philippines meet its clean energy targets.
• Implementation of Market-Based Programs. Through various department circulars, the DOE has since spearheaded operationalization of market program such as WESM Mindanao, Ancillary Services/ Reserve Market, Green Energy Option Program (GEOP) under the Retail market and the Renewable Energy Market.

Equally important, the Energy Regulatory Commission (ERC) implemented several key regulations aimed at lowering electricity prices for consumers, one of which is the Omnibus Rules for Customer Choice Programs in the Retail Market (ERC Resolution No. 13, Series of 2024). The Omnibus Retail Rules was issued by the ERC to consolidate and update the guidelines governing various consumer choice programs in the Philippine electricity market. These rules aim to empower consumers, enhance market competition, and ensure transparent and fair practices among retail electricity suppliers (RES). One of the key features under the Omnibus Retail Rules is the Retail Aggregation Program (RAP). RAP allows multiple electricity consumers within the same distribution utility franchise area to pool their power demand. By aggregating their consumption, these consumers can collectively meet the 500-kilowatt threshold required to participate in the Retail Competition and Open Access (RCOA), enabling them to negotiate directly with licensed retail electricity suppliers for more competitive rates and favorable contract terms.

With government setting the tone, the private sector responded positively as shown by increased available supply capacities, enhanced transmission infrastructure, and over-all improved efficiency of the distribution and supply sectors.

Generation

Policy issuances paved the way for the development of new technologies, such as solar plants and energy storage systems, with additional conventional capacity aimed at boosting the energy supply situation of the country.

In the WESM, significant improvements were observed with the availability of existing generating units which also contributed to the supply margin. While oil-based plants contributed less than 1% in the system-wide generation mix, the overall RE capacity increased by approximately 1,000 MW which considers GEAP 1 & 2 registered capacities. These capacities underwent priority dispatching and displaced higher-priced plants through the merit ordering process.

In 2025, most natural gas plants were offering their maximum capacities while a few remain partially derated. This resulted in an increasing trend with an average capacity reaching 3,674 MW for natural gas. Furthermore, the minimum and maximum available capacity for this technology type increased to 3,404 MW and 4,121 MW, respectively.

The system-wide average demand in the first half of 2025 grew by 1.83% compared to the first half of 2024. This demand rise was comfortably met by (highest on record) average system-wide supply margin reaching 6,916 MW from 5,626 MW back in 2024.

These figures imply increased reliability of generation companies resulting to an improved and more reliable supply that can be used by the grid.

Transmission

The improvements in the transmission systems in the recent years resulted in reduced congestion and market clearing by more inexpensive sources. Notably, the following transmission projects helped ease transmission constraints:

• Mindanao–Visayas Interconnection Project (MVIP) last May 2023
• Mariveles–Hermosa 500 kV Transmission Line last April 2022
• Hermosa–San Jose 500 kV Transmission Line last June 2023
• Cebu–Negros–Panay 230 kV Backbone Project 3 (CNP3) last April 2024
• Cebu–Bohol 230 kV Interconnection Project last September 2024

These grid improvements facilitated better generator performance in comparison to previous years and resulted in less outages and a better supply margin.

Distribution

Since the spot market prices decreased, an alternative source of low-cost supply became available leading to a shift in contracting strategy. DUs are also contributing by consciously strategizing their participation in the market such as getting supply from market especially in times when the spot prices are relatively low. Utilities that manage their supply sourcing well by remaining active in monitoring market trends are positioned to offer consumers lower power rates.

Retail Supply

Under the competitive retail segment of the market, several programs enable eligible end users to source their electricity from preferred retail suppliers, thus, empowering customers’ power of choice for better rates and better services:

• RCOA and RAP- 500kW average peak demand and above
• GEOP- 100kW average peak demand and above

The implementation of the RAP together with the recent increased level of customer switching to the Retail Market resulted in an increasing trend in MWh load consumption in 2025 as compared to the previous years. The Retail Market share as of June 2025 is 22.26%, relative to 21.27% back in 2024. The first RAP switch was facilitated by IEMOP in February 2025.

WESM Developments

Consistent with IEMOP’s mission to operate efficient, competitive, and transparent electricity markets, the following market developments have since been implemented in the WESM:

• WESM Mindanao. Mindanao was integrated into the WESM on 26 January 2023 enabling energy trading across Luzon, Visayas and Mindanao. Coupled with Mindanao-Visayas Interconnection Project (MVIP) energized in January 2024, the export of excess supply of energy from Mindanao to Visayas via the submarine high voltage line enabled more cost-efficient power to reach consumers. Following the establishment of WESM in the region, the retail market was then opened in 2024 enabling eligible end-users in Mindanao to source their electricity from preferred retail electricity suppliers.
• Ancillary Services/ Reserve Market. The trading of reserves was integrated into the WESM on 26 January 2024 making WESM a co-optimized energy and reserve market, enabling the system to meet its reserve requirements. Reserves (or Ancillary Services) refer to services necessary to support the transmission of capacity and energy from resources to loads. These are “stand-by” capacities scheduled by the System Operator to ensure a stable and reliable operation of the grid.
• Green Energy Option Program (GEOP). Section 9 of the RE Act empowered and accelerated customers’ power of choice through the implementation of the GEOP. Under this policy, electricity end-users have the option to source their electricity supply from their preferred RE Power Suppliers. Currently, there is a total of 693 registered GEOP end-users in the country.
• Renewable Energy Market (REM). The REM, established under the Renewable Energy Act of 2008, serves as the platform where RECs—each representing one (1) MWh of electricity from eligible renewable energy sources—are traded to enable mandated participants, such as distribution utilities and retail suppliers, meet their compliance obligations under the Renewable Portfolio Standards (RPS). The DOE announced the full commercial operations of REM on 26 December 2024 and as of now, there are 50.5 million RECs issued in the registry covering the periods 2018 to 2025.

In summary, these developments in all sectors of the electricity value chain contributed to lowering of electricity prices; every segment of the power sector is seen as having supported the goal of making electricity prices more affordable to consumers.

“Lowering electricity prices is an industry concern requiring an industry wide collaborative response. The problem cuts across every link in the industry value chain as the industry operates under a system of pass-on charging. And as shown by market results in the last six months, a collective effort of all stakeholders can indeed lower market prices.”, Nethercott concluded.

IEMOP lauds and appreciates the Philippine Chamber of Commerce and Industry (PCCI) for expressing its support for a well-functioning and accountable electricity market. We share the view that all participants in the Wholesale Electricity Spot Market (WESM) must satisfy all their financial obligations on time.

It is important to clarify however, that any amount unpaid by defaulting WESM customers are not passed on to consumers nor delinquencies subsidized by consumers. These remain as receivables of the generation companies and other sellers in the WESM.

IEMOP has religiously enforced the rules of the WESM, including the timely issuance of default and suspension notices, and imposition of financial penalties. These actions are guided by the WESM Rules and relevant Market Manuals, which empower IEMOP to impose appropriate sanctions, including suspension and deregistration, as warranted. These measures protect the interests of compliant participants and preserve market discipline.

IEMOP has also collected penalties for non-compliance by market participants consistent with WESM Penalty Manual (Issue 3.0). These collected financial penalties have been flowed back to consumers through their respective distribution utilities, electric cooperatives, and electricity suppliers.

We likewise support PCCI’s call for transparency in the billing practices of Retail Electricity Suppliers (RES). We remain steadfast in our commitment to uphold the principles of transparency, competition, and efficiency in the operation of the WESM—ensuring a fair and reliable marketplace for all.

For the April 2025 billing period, the country’s overall power supply rose to 21,345 megawatts- an 8.8% increase from March. Electricity demand also went up to 14,739 megawatts, about 7.8% higher than the previous month, largely due to the intense summer heat. With more supply available than demand, the supply margin widened to 4,585 megawatts, compared to 3,957 megawatts last March. As a result, market prices went down from PHP 5.34 per kilowatt-hour to PHP 4.52- a 15.3% decrease. This downward trend is a reversal from the same period last year when prices went up. The key difference this year is the stronger supply margin in April 2025.

Similar trends were observed across Luzon, Visayas, and Mindanao, with both supply and demand increasing. The wider supply margin this billing month, compared to March, contributed to lower electricity prices nationwide.

In terms of generation mix, renewable energy accounted for 22% of total generation. Coal’s share increased from 54.3% to 59.8%, while natural gas declined from 19% to 17%, and oil-based generation dropped from 0.8% to 0.5%. Solar energy held steady at 4.8%, while hydropower continued to decline, from 10.6% in January to 7.3% in April, due to the ongoing dry season.

On the retail market, about 21% or 2.12 TWh of total customer consumption was served through the retail electricity market this billing period. The Effective Spot Settlement Price (ESSP) dropped to PHP 4.82/kWh from PHP 5.90/kWh in March- an 18.3% decrease. Spot quantities also increased, accounting for 22.4% of total energy transacted. Despite this higher spot exposure, the total trading amount slightly declined from PHP 17.76 billion to PHP 17.17 billion, mainly due to lower market prices.
As for the Renewable Energy Market (REM), IEMOP issued a total of 1,457,878 Renewable Energy Certificates (RECs) for the January to March 2025 billing periods, comprising 291,231 FiT RECs and 1,166,647 Non-FiT RECs. This brings the cumulative total of issued RECs to 48.14 million. Additionally, 627,976 more FiT RECs are expected to be issued for February to March 2025.

In summary, despite rising demand due to the peak of the dry season and the upcoming elections, plant outages were fewer, allowing for higher available supply. This resulted in a significantly wider supply margin and lower prices across all grids this billing month compared to the previous month.

In January 2025, the system average price decreased by 14.3% from December 2024, dropping to 2.96 PHP/kWh- the lowest average price recorded since January 2023 brought about by a relatively high supply margin following a low system demand amid cooler temperature. The system-wide average supply decreased by 0.2% to 20,110 MW (-41 MW), while average demand declined by 5.6% to 12,529 MW (-746 MW). This resulted in an average system margin of 7,581 MW, which was 10.26% higher than the previous billing period’s average system margin of 6,875 MW.

In Luzon, the average supply decreased by 1.6% to 13,962 MW (-230 MW), while average demand fell by 6.4% to 8,741 MW (-602 MW). This resulted in an average margin of 5,221 MW, which was 7.67% higher than the previous billing period’s margin of 4,849 MW. Consequently, the regional average price in Luzon decreased by 8.5% to 2.98 PHP/kWh. Similarly, in Visayas, supply decreased by 4.5% to 2,372 MW (-112 MW), while demand declined by 4.4% to 1,856 MW (-86 MW). This shift in supply and demand led to a 19.1% reduction in the regional average price, which dropped to 3.13 PHP/kWh. In Mindanao, supply increased by 8.7% to 3,775 MW (+302 MW), while demand fell by 2.9% to 1,931 MW (-58 MW). As a result, the regional average price in Mindanao dropped significantly by 31.9% to 2.65 PHP/kWh.

Coal remains the dominant energy source, though its share decreased from 58.87% in December 2024 to 55.0% in January 2025. Meanwhile, natural gas saw a gradual increase, rising from 15% to 17% from the previous billing month. Among renewable sources, hydro generation slightly rebounded from 905 GWh in December 2024 to 956 GWh in January 2025. Geothermal energy remained stable, contributing around 8-9% of total generation. Wind and solar energy showed minimal changes, with wind generation slightly decreased and solar generation slightly increasing in January 2025.

Overall, total energy generation (GWh) is lower due to reduced demand, falling by 2.75% from 9,245 GWh in December 2024 to 8,991 GWh in January 2025.

Meanwhile, total reserve requirements continue to be fulfilled through the market. Zonal prices for reserve commodities decreased across all regions. However, regulation and contingency reserve prices in Visayas remain at a higher level, compared to Luzon and Mindanao, as oil-based plants cleared the reserve market in the region.

 

Market Development Updates

Trading participants under the Renewable Energy Market (REM) have kickstarted the trading activities following the commencement of full commercial operations on 26 December 2024 as declared by the DOE. As of 3 Feb 2025, a total of 46,634 Renewable Energy Certificates (RECs) amounting to 9.68 million pesos with an average price per REC of PHP 207.47 have been traded in the REM. The REM is the venue for trading RECs, each of which can be sold at a PHP 241.56 price cap, to facilitate compliance of mandated participants with the Renewable Portfolio Standards (RPS) obligations.

Additionally, IEMOP, as the Central Registration Body (CRB) of the retail market made, on 7 February 2025, the first customer switch from captive to the contestable market under the Retail Aggregation Program (RAP). Under the Omnibus Rules for Customer Choice Programs in the Retail Market issued by the Energy Regulatory Commission (ERC) on 14 August 2024, the RAP involves the aggregation of lower-level end users, under certain conditions, to meet the 500kW Retail Competition and Open Access (RCOA) demand threshold after which the aggregated group can then be supplied by their chosen retail supplier, also referred to as retail aggregator under the RAP. The RAP is one of the customer choice programs in the retail market along with the RCOA and Green Energy Option Program (GEOP). RCOA allows electricity consumers, particularly those with electricity demand of 500kW and above to choose their electricity supplier whereas under GEOP, any consumer with a demand of at least 100 kW can voluntarily opt to source their electricity from renewable energy sources.

“IEMOP commends the retail aggregator, PrimeRES Energy Corporation, as well as the aggregated end-users under the Manila Water Company, Inc., for their participation and confidence in the Retail Aggregation Program (RAP) – one of the customer choice programs of the retail market. IEMOP congratulates the ERC and DOE for this significant milestone.”, said IEMOP President and CEO, Atty. Richard J. Nethercott.